Adjusting to Income Loss

I have written before that more money will not make you happier.  However, a suddenly reduced income can certainly cause an enormous amount of stress.  Despite our best career planning, forces beyond our control can leave us feeling financially vulnerable and stressed.  Some situations might include:

• A layoff
• A business downturn that leads to management asking everyone to take salary reductions
• A job search that goes on longer than you expect after a life transition like moving or graduation

these are normal life circumstances in a shifting, global economy.  But when they happen to you they feel completely personal and very stressful!

Extension researchers at the University of Minnesota have put together a variety of resources that can help you understand and deal with these circumstances.  This is a very comprehensive and useful site.  If you or someone you know is adjusting to a suddenly reduced income, check it out and see if you can find some encouragement to help you get through!

Comments

[MMG]

I just had to laugh at the last bullet. Were you thinking of me when you wrote that? haha!

[almostgotit]

Decompressing after a long day and happened upon your latest post.

The worse way of all to experience a sudden loss of income is to suddenly lose a spouse, and this is exactly what I'm walking through with a friend right now... I just finished blogging about it, in fact!

http://www.almostgotit.com/2008/03/24/parents-1-make-a-plan-2-dont-die-please/

Didn't know you'd be part of an answer to prayer today, did you? ;)

[Kris]

Thanks for this. My husband volunteered to be laid off last year and has been working on a new career in real estate. As you can imagine, this is not the ideal time to be doing that! Although it was a great long term decision for him, it is hard to get through the first couple of years of little to no income. I appreciate the coping advice!

[Jacob Johansen]

My company is offering severance packages at the moment, and I'd love to take one, but the fear of not finding a job after the severance dries up is keeping me there...

I'm not concerned though that I'll be layed off, but I do have other ventures I'd like to be working with, and a corporation is not one of them.

One of the best pieces of advice that I can give is make sure you are always building your network. Recently within the last year, my network has matured enough that I feel like I could honestly get a good job within at least 12 months if I ever decided to leave my company. (and linkedin.com is great for managing your network).